British Columbia-based Diamcor Mining will buy an alluvial diamond deposit in South Africa's Limpopo province from gem giant De Beers for R14-million, the company said in a statement.

The TSX Venture Exchange-listed company's South African subsidiary, DMI Minerals South Africa, had been selected as the successful bidder for the Krone-Endora deposit, next to De Beers Consolidated Mines' Venetia mine.

Diamcor owns 70% of DMI SA and its black economic empowerment partner, Nozala Investments, owns the balance.

The Krone-Endora acquisition is subject to definitive acquisition documents between DMI SA and De Beers, the raising of the necessary funds, government permission to cede prospecting rights from De Beers to DMI SA, the reassignment of the existing environmental and rehabilitation liability and TSX Venture Exchange approval.

Once the acquisition has been completed and the prospecting rights transferred, DMI SA will immediately begin bulk sampling and evaluation, to determine what further work is needed to arrive at a production decision, the firm said.

If the partners decide to proceed to production at the deposit, the plan is to contract the polishing of suitable diamonds to women-owned Nozala's diamond beneficiation subsidiary.

Nozala has been awarded a diamond polishing and cutting license from the South African Diamond Board and has been appointed as one of the diamond siteholders for De Beers South Africa.

Diamcor shares rose 10,87% on Tuesday morning, to C$0,51 apiece by 9:56 in Toronto. 

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